Patriot Coal (OTC: PCXCQ) announced Nov. 12 that it has secured needed consents from its lenders to transfer a portion of the company’s current letter of credit facility into a new $201m letter of credit facility with a five-year term.
Also, the company is preparing to commence syndication of a $250m term loan facility and a $125m asset-backed revolving loan facility.
Barclays will serve as Lead Left Arranger and Bookrunner for the term loan facility, with Deutsche Bank acting as Joint Lead Arranger and Bookrunner. Deutsche Bank will serve as Left Lead Arranger and Bookrunner for the asset-backed revolving loan facility, with Barclays acting as Joint Lead Arranger and Bookrunner.
Patriot, in bankruptcy protection since July 2012, expects to launch the syndication of these facilities on Nov. 14 with the expected closing of the facilities concurrent with Patriot’s emergence from bankruptcy, expected prior to the end of 2013.
“These exit finance facilities are the last critical step in Patriot’s emergence from bankruptcy, and our lenders’ support is an endorsement of our plan of reorganization,” said Patriot President and CEO Bennett Hatfield. “Funding provided by the credit facilities will enable us to exit from Chapter 11 as a strong, well-capitalized company.”
The financing agreements are subject to typical conditions, including, among others, approval by the bankruptcy court, completion of definitive financing documentation, and successful syndications in the loan markets.
Patriot Coal is a producer and marketer of coal in the eastern U.S., with mining complexes in West Virginia and western Kentucky.
